What Must a California Home Seller Disclose? The Transfer Disclosure Statement Explained for Renovated Homes

Short answer: most California sellers of residential property with one to four dwelling units (which the statute calls "single-family residential property") must give the buyer a Transfer Disclosure Statement (TDS) describing the property's condition as the seller knows it. Disclosures must be made in good faith, which Civil Code § 1102.7 defines as "honesty in fact." Under § 1102, any waiver of the disclosure requirements is void, and the Department of Real Estate's guide Disclosures in Real Property Transactions (RE 6) explains that selling "as is" does not remove the duty to disclose known material defects. If the TDS, or a material amendment to it, is delivered after the buyer's offer, § 1102.3 gives the buyer three days after in-person delivery, or five days after mail or electronic delivery, to terminate by delivering a written notice of termination to the seller or the seller's agent. The period runs from delivery of the completed required sections of the form.

This guide focuses on what that means for houses that have been remodeled, repaired or altered without permits, which is where many Bay Area disputes start. It is general information current as of 3 October 2026, not legal advice. For a specific transaction, talk with your agent and a California real estate attorney.

Where disputes start

Disclosure questions come up from both sides. A California buyer who found floor defects after closing on a flip wrote that most of what they read required the seller to have known of a defect and failed to disclose it, and suspected the flippers simply used cheap labor without knowing the floors were defective. In another thread about a flipped house, a commenter said flippers "in many states don't have to disclose anything"; whatever is true elsewhere, California has both the TDS and a specific flip disclosure law. And in a San Mateo County thread about shower work done without permits, owners wondered whether a later buyer would notice. These are personal accounts and opinions, not verified facts or legal authority.

What the TDS framework requires

An exemption from the TDS form is not an exemption from honesty. RE 6 describes disclosure duties that exist outside the form, including the agent's duty under Civil Code § 2079 to conduct a reasonably competent and diligent visual inspection of accessible areas and disclose what that inspection reveals.

How this applies to remodeled homes

• Known unpermitted work. If you know a room, bathroom or conversion was built or altered without required permits, treat it as a disclosure item and discuss it with your agent. Describing the work vaguely, or describing structural or plumbing work as cosmetic, is not good faith.
• "It was like that when I bought it." That statement may be honest if it is true and you disclose what you know. It becomes a problem when it is used to avoid disclosing work you did, commissioned or learned about. Knowledge you gained after buying, for example from a contractor or inspector, is still knowledge.
• Repairs. Past leaks, settlement or mold that were repaired can still be material, especially if the cause or the repair's success is uncertain. See disclosing past repairs.
• Open permits. A permit never finaled is a fact buyers care about. See open and expired permits.
• Recent flips. Sellers who accept an offer within 18 months of acquiring title must also disclose contractor work and permits under Civil Code § 1102.6h (AB 968). See flipped-house disclosure.
• Other state-required statements come with the transaction, including the smoke alarm statement under Health and Safety Code § 13113.8 and the water-conserving fixture disclosure under Civil Code § 1101.4(c). Natural hazard disclosures are separate; see natural hazard disclosure.

Sellers: a practical sequence

1. Gather your records: permits, contracts, invoices, inspection reports, warranties and photos from any remodel.
2. Pull the city or county permit history and compare it with what was built.
3. List known issues, repairs and alterations, including those done by previous owners that you know about.
4. Complete the TDS yourself, carefully. Your agent can explain the form but cannot know what you know.
5. Where you are unsure, say what you know and what you do not; attach reports rather than paraphrasing them.
6. Ask a real estate attorney about anything you are unsure how to describe.

Buyers: reading a TDS for a renovated house

1. Compare the TDS with the permit history and the listing's room counts.
2. Ask written follow-up questions about each remodel: who did the work, whether it was permitted, and what warranties exist.
3. Get your own inspections, including specialists where warranted; a disclosure is not a substitute. See home inspection limits.
4. Track your § 1102.3 termination window if the TDS arrives after your offer, along with any contract contingency deadlines.
5. If you find problems after closing, see defects found after closing.

Common mistakes

• Assuming "as is" ends disclosure duties.
• Treating a TDS exemption as permission to stay silent about known problems.
• Leaving the TDS to the agent to fill in.
• Buyers relying on disclosures instead of inspections.
• Waiting past the termination window to raise questions.

Checklist

• Seller records and permit history gathered
• Known alterations, repairs and unpermitted work listed honestly
• Flip (18-month) disclosure prepared if applicable
• Smoke alarm and water fixture statements included
• Buyer: TDS compared with permits and inspections; follow-up questions in writing; deadlines tracked

Current as of 3 October 2026. Disclosure law is detailed and fact-specific. Confirm current requirements and forms with your agent and an attorney.